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Remanufacturing as a Marketing Strategy
Abstract
The profitability of remanufacturing systems for different cost, technology, and logistics structures has been extensively investigated in the literature. We provide an alternative and somewhat complementary approach that considers demand-related issues, such as the existence of green segments, original equipment manufacturer competition, and product life-cycle effects. The profitability of a remanufacturing system strongly depends on these issues as well as on their interactions. For a monopolist, we show that there exist thresholds on the remanufacturing cost savings, the green segment size, market growth rate, and consumer valuations for the remanufactured products, above which remanufacturing is profitable. More important, we show that under competition remanufacturing can become an effective marketing strategy, which allows the manufacturer to defend its market share via price discrimination.
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Citations
Cited by
Towards circular economy implementation: A comprehensive review in context of manufacturing industry
Lieder, M., & Rashid, A. (2016) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2015.12.042 · Cited by 2,762
Research advances in environmentally and socially sustainable operations
Tang, C. S., & Zhou, S. (2012) · European Journal of Operational Research · doi:10.1016/j.ejor.2012.07.030 · Cited by 466
Competitive Quality Choice and Remanufacturing
Örsdemir, A., Kemahlıoğlu‐Ziya, E., & Parlaktürk, A. K. (2014) · Production and Operations Management · doi:10.1111/poms.12040 · Cited by 438
Wang, Y., Zhu, Q., Krikke, H., & Hazen, B. (2020) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2020.120275 · Cited by 89
Kumar, A. (2017) · Asia Pacific Journal of Marketing and Logistics · doi:10.1108/apjml-09-2016-0159 · Cited by 62
Metadata
- Authors
- Atasu, A., Sarvary, M., & Van Wassenhove, L. N.
- Venue
- Management Science
- Published
- 2008-10
- Volume
- 54
- Issue
- 10
- Pages
- 1731-1746
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W2112482196
- Cited by
- 951
- References
- 0
- FWCI
- 47.86
- Type
- journal article
- Language
- en
- Open access
- closed
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- Atasu, A., Sarvary, M., & Van Wassenhove, L. N. (2008). Remanufacturing as a Marketing Strategy. Management Science. https://doi.org/10.1287/mnsc.1080.0893
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